2022 was a challenging period for investors with many uncertainties making it hard to make decisions. This was especially so for international investors who were eyeing opportunities in other global markets as they emerged from covid restrictions.

However, the rapid reversal of the zero covid policy appears to have eased some concerns and uncertainty that had lingered for much of 2022 and has helped set a pro-growth tone for 2023. Analysts have raised their forecasts for China's economic growth in 2023, confident that the country’s reopening and proactive fiscal and monetary policies will ensure solid economic growth. Meanwhile, more supportive policies for the property sector towards the year’s end have also eased pressure created by the recent sector deleveraging.

Nevertheless, the path from here to there is often not as smooth as it would at first seem. There will undoubtedly be pain and challenges ahead as we make progress towards reconnecting with the global economy and getting back to where we were pre-pandemic. Businesses and investors should be ready for the rebound, while also being prepared for the short-term pain.